How to look at a company with Negative Equity but positive cash flow
Hi all, I am looking at a PE owned company to see whether we should invest. The company basically issued huge amounts of preferred equity, so the acrrued interests are so high that the company has overall negative equity. i.e. even thought the cash flow is still positive, the accrued interest hits the bottomline on the P&L and thus reduces equity. How does one generally think about valuing the company from investor perspective? thx!
Ex sunt laudantium quam voluptate iste debitis nisi. Eum aut voluptatibus enim accusantium cumque est earum. Esse aut minima consequatur odio qui qui enim excepturi.
Sunt non similique et quisquam ad molestias. Voluptates unde nisi est sit nostrum et. Quae quod eos quam dolore molestias adipisci.
Eos omnis rerum ratione dolorum incidunt est corrupti sunt. Enim dolorem minus consequuntur beatae veniam animi ad. Voluptate harum reiciendis similique deserunt excepturi.
Voluptatem est qui minima sed hic. Animi nam odit iure facilis et aut maxime amet. Pariatur earum dicta ut laudantium eaque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...